OYO, the IPO-bound hospitality startup, has revived its ‘self-operated hotels’ business after a three-year hiatus. It aims to manage 200 premium hotels across Indian metros on a revenue-sharing basis through annual to long-term contracts. The company has initiated operations in 35 hotels and plans to onboard professional hotel operators to manage these properties.
According to OYO, these hotels will bear the tag ‘Managed by OYO’ on their App and Website, indicating the company’s active involvement in their operations. They’re specifically targeting partnerships with real estate developers to identify suitable properties for this initiative. OYO will focus on mid-market hotel brands like Townhouse, Townhouse Oak, and Collection O, facilitating leasing arrangements with property owners, allowing them to start hotels without hefty overhead costs.
Anuj Tejpal, OYO’s Chief Merchant Officer, emphasized, “By offering hoteliers and property owners the opportunity to participate in this programme, OYO aims to create a win-win situation that benefits landlords, professional hotel operators, as well as travellers.” The company plans to extend this program beyond the initially targeted 200 hotels, encouraged by positive responses from top hoteliers.
Reports indicate that OYO had previously phased out contracts with property owners around
2020 due to profitability concerns. However, with this resurgence, OYO is pursuing a strategic approach towards its hotel management initiatives. The company, led by Ritesh Agarwal, has resubmitted its Draft Red Herring Prospectus to SEBI, indicating a renewed focus on its IPO plans after earlier delays and adjustments in fundraising goals.
